Merchants are often confused about how to buy a POS machine and use it for their business transactions. To help them buy a POS machine without or breaking the law, I have compiled information on how to buy, connect, and use a POS machine. Hope you find it helpful.
Let’s assume that you want to buy a POS that accepts contactless payments, chip and pin payments, and swipe payments from both iPhone and Android devices. You also need a device that prints receipts of the payments as well.
First of all, you must be buying the POS machine for business purposes. Even if you are a self-employed individual handling the business on your own, your business must registered as a limited company to qualify as a POS machine buyer. This is essential to verify that the purpose of buying a POS is to carry out payments for the business and not conduct personal transactions. You will expected to attach address proof of your business with other documents.
You need to find companies that sell POS machines that you can buy. You can find the supplier online and check their reviews to ensure that they sell reliable products. The machine type or model that you want can selected after that, but finding a supplier must be a priority.
To buy a POS machine you have to submit a comprehensive application to the supplier. You can submit the application on-call, online, or in person. The medium of applying does not impact the sale.
Buying a POS machine is not as simple as buying other electronic devices, where all you need to do is pay the supplier and take the product home. The application form is quite comprehensive because the suppliers of the POS machine have to collect the information and submit it to someone at a higher level from their banking partners or bank acquirers, on your behalf.
The bank acquirers will be the ones assisting your business transactions and connecting your POS. They will manage the interest and regulations on transactions conducted with different types of cards. They will be the ones providing offers, setting up interest on say domestic debit and prepaid cards, the rate for international American Express card, the interest on international visa cards, etc.
Other companies might provide a blended rate depending upon the device you buy. For example, modern POS devices charge 1.65-1.8% as a blender term for the majority of cards and have a different rate for international and business cards. You also have the option of choosing your own rate plan.
5. Setting up
Setting up the machine is quite a simple task. Once you turn on the machine, you will expected to complete a small registration, confirm the signature, and unlock the machine. After you’re done, you will be ready to accept card payments.
How To Know Whether You Are Violating The Law
● You will be violating the law if you buy a POS machine in the UK or Europe and send it to another country. The country that you mail the machine to is irrelevant because you will be in violation by transferring it.
● In case you wish to help a friend who wants a POS machine, you must teach them how to buy it in their own country. If you send a machine from the UK or Europe, you will be breaking the law and putting yourself in a position to questioned by law authorities.
● If you have received a machine and are selling it to someone, then you are responsible for the use of the machine by the merchant. The machine will linked to the business address of the buyer.
● These machines have a GPS tracker on them and many suppliers apply geofencing and geographical boundaries of using the machine. You must not try to take the machine beyond them.